BANGALORE: Union defence minister AK Antony confirmed that a reduction in the country's military budget was imminent, as the Manmohan Singh-led UPA government attempts to rein in government spending to clamp down on a rampaging fiscal deficit.

"The global recession has affected India as well, and we have to tighten our belts across all areas for a better future... All (government) departments have been asked to reduce their budgets - both capital and revenue," the defence minister said at Aero India 2013 in Bangalore.

Antony was in Bangalore on Wednesday to inaugurate the biennial military and aerospace exhibition, which has over 600 participants, including a number of the world's biggest military contractors showcasing their wares.

However, the defence minister reiterated that there would be no reduction in spending on "priority areas."

"There will not be any spending cuts when it comes to operational preparedness of our ground forces," he said.

He, however, did not specify which defence procurement could get affected as a result of the proposed cuts. Critical ones, including the $15 billion Medium, Multi-Role Combat Aircraft contract for 126 combat aircrafts the Indian Air Force are not expected to be affected.

"There is no question of delay because of budget cuts. It is one of the biggest procurements from the ministry and air force," the defence minister said

Infrastructure and defence are two of the most high-profile sectors that could see critical projects being put on hold, a move that the government expects will result in savings of about Rs 1.1 trillion ($20.6 billion).

India has traditionally been one of the world's largest importers of military hardware, importing close to 70% of its military requirements, a situation exacerbated by the limited development and production capabilities of the government-owned defence undertakings.

India's defence budget has seen double-digit growth over the past two years, with the 2012 outlay at Rs 1.93 lakh crore, a 17% increase over 2011, as the country looked to overhaul its outdated Soviet-era military hardware, as well as offset growing Chinese dominance in Asia.

"We will defer expenditure to the next financial year," Anthony said.

Separately, Antony also lashed out at the country's defence-focused public sector undertakings (PSUs), chastising them for their lack of spending on research and development.

"PSUs should spend more on R&D. Their spending has not been enough. Indigenization is a very big focus area for us, and they have to spend more on research...Hindustan Aeronautics is trying to speed up its programme to build Intermediate Jet Trainers, and they must show the results by 2015," he said.

The defence minister also expressed concern over the China's role in building Pakistan's strategic Gwadar port, which is expected to open up an energy and trade corridor for the latter, once complete. Last week, China Overseas Port Holdings was transferred the operational responsibility of the port by the Pakistani authorities.